Criminal Justice News

Saturday, October 15, 2016

Former NCIS Supervisory Special Agent Sentenced to 12 Years in Prison for Taking Bribes from Defense Contractor in Massive Fraud and Corruption Scandal

A former Naval Criminal Investigative Service (NCIS)
supervisory special agent was sentenced in federal court today to 144 months in
prison for disclosing sensitive law enforcement reports to a defense contractor
who was the target of a criminal fraud investigation in exchange for cash,
luxury travel and the services of prostitutes.

Assistant Attorney General Leslie R. Caldwell of the Justice
Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern
District of California, Director Andrew Traver of the Naval Criminal
Investigative Service (NCIS), Director Dermot O’Reilly of the Department of
Defense’s (DoD) Defense Criminal Investigative Service (DCIS) and Director
Anita Bales of the Defense Contract Audit Agency made the announcement.

John Bertrand Beliveau II, 47, of York, Pennsylvania, was
sentenced by U.S. District Judge Janis L. Sammartino of the Southern District
of California, who also ordered Beliveau to pay $20 million in restitution to
the Navy.According to admissions made
as part of his plea agreement, Beliveau helped former Glenn Defense Marine Asia
(GDMA) CEO Leonard Francis perpetrate a massive fraud scheme on the U.S. Navy
by providing information that allowed Francis to avoid, stall and thwart
criminal investigations into misconduct by GDMA.

“Beliveau tarnished his NCIS badge and sold sensitive law
enforcement information for envelopes of cash, luxury travel and tawdry
entertainment,” said Assistant Attorney General Caldwell.“His actions risked an important criminal
investigation and the safety of witnesses who agreed to cooperate with law
enforcement under the belief that their identities would be protected.Today’s sentence reflects the gravity of
those crimes and makes clear that we will not tolerate law enforcement
corruption.”

“John Beliveau’s deceit was a devastating blow to the U.S.
Navy and ultimately the nation that he was sworn to protect,” said U.S.
Attorney Duffy.“While this disgraced
agent serves what may be the longest prison sentence ever handed down to a
federal agent in a corruption case, his colleagues are left to rebuild the
trust and credibility that he singlehandedly destroyed.”

“John Beliveau’s reprehensible decision to provide sensitive
information to the targets of ongoing fraud investigations in exchange for
bribes tragically tarnished his badge and the reputation of NCIS,” said
Director Traver.“It is impossible to
quantify the extent or duration of the harm done by Beliveau, but holding him
accountable will further signal that NCIS is committed to rebuilding the trust
he damaged.”

“Today’s sentencing sends a resounding message that justice
will be served regardless of rank or position." said Director
O’Reilly.“The conduct of former NCIS
Supervisory Special Agent Beliveau is reprehensible.The foundation of our criminal justice system
relies on the public’s trust in the law enforcement community.Whenever a law enforcement member breaches
that trust, it leaves an indelible stain on those who serve to enforce our
nation’s laws.The Defense Criminal
Investigative Service and its law enforcement partners will relentlessly pursue
any individual who places at risk the safety and security of our armed forces
personnel.”

“We are proud to be part of the team that has been
investigating the criminal allegations in the Glenn Defense Marine Asia case,”
said Director Bales.“It is especially
troubling that someone in his role is on the wrong side of the investigation.”

According to his plea agreement, Beliveau acknowledged that
he regularly searched confidential NCIS databases for reports of investigations
related to Francis and GDMA.Over the
course of years, he helped Francis avoid multiple criminal investigations by
providing copies of these reports.These
reports not only tipped off Francis that he was the target of a criminal
investigation, but provided sensitive law enforcement information about the
ongoing investigation, including the identities of the subjects of the
investigations; information about witnesses, including identifying information
about cooperating witnesses and their testimony; the particular aspects of
GDMA’s billings that were of concern to the investigations; the fact that the
investigations had obtained numerous email accounts and the identities of those
accounts; the reports to prosecutors and their interactions with the
investigations; and planned future investigative activities.

Beliveau admitted that he attempted to cover up his
involvement by asking Francis to delete incriminating emails and deactivate an
email account, and warned Francis about indictments and a warrant on his email
account.

Beliveau also admitted that he counseled Francis on how to
perpetuate his fraud scheme and evade detection.In July 2011, Beliveau advised Francis to
respond to the pending NCIS investigation into GDMA’s submission of a
fraudulent claim to the U.S. Navy for dockage and wharfage fees for certain
U.S. Navy ship visits to Thailand.

In return for providing him with information, Francis
provided Beliveau with envelopes containing cash, luxury travel from Virginia
to Singapore, the Philippines and Thailand.On many occasions, beginning in 2008 and continuing through 2012, while
Beliveau was posted in Singapore, Francis provided him with prostitutes, lavish
dinners, entertainment and alcohol at high-end nightclubs.The tab for each of these outings routinely
ran into the thousands of dollars.

So far, a total of 16 individuals have been charged in
connection with the GDMA corruption and fraud investigation.Including Beliveau, 11 of those are current
or former U.S. Navy officials, including Admiral Robert Gilbeau, Captain (ret.)
Michael Brooks, Lt. Commander Gentry Debord, Commander Bobby Pitts, Captain
Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander
Jose Luis Sanchez, Petty Officer First Class Daniel Layug and Paul Simpkins, a
former DoD civilian employee who oversaw contracting in Singapore.

Gilbeau, Debord, Dusek, Misiewicz, Malaki, Beliveau,
Sanchez, Layug and Simpkins have pleaded guilty.On Jan. 21, 2016, Layug was sentenced to 27
months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to
40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000
fine; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay
$30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016,
Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000
and to pay $95,000 in restitution to the Navy.Gilbeau, Sanchez and Simpkins also await sentencing.Brooks and Pitts were charged in May 2016 and
their cases are pending.

Also charged are five GDMA executives: Francis, Alex Wisidagama,
Ed Aruffo, Neil Peterson and Linda Raja.Wisidagama has pleaded guilty and was sentenced on March 18, 2016, to 63
months in prison and $34.8 million in restitution to the Navy.Francis and Aruffo have pleaded guilty and
await sentencing; Peterson’s and Raja’s cases are pending.

DCIS, NCIS and the Defense Contract Audit Agency are
investigating.Assistant Chief Brian R.
Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys
Mark W. Pletcher and Patrick Hovakimian of the Southern District of California
are prosecuting the case.